Lindab International AB (publ): Lindab's Report for the Third Quarter 2016

Third Quarter 2016

• Net sales increased to SEK 2,042 m (2,008), of which organic growth amounted to 4 percent.
• Operating profit increased with 8.6 percent to SEK 190 m (175), excluding one-off items* of SEK -25 m (30). Operating profit amounted to SEK 165 m (205).
• The operating margin, excluding one-off items, increased to 9.3 percent (8.7).
• Profit for the period decreased to SEK 109 m (146).
• Earnings per share decreased to SEK 1.43 (1.91).
• Cash flow from operating activities increased to SEK 126 m (117).
• The net debt/equity ratio amounted to 0.4 (0.5) at the end of the period.
  

January - September 2016

• Net sales increased to SEK 5,810 m (5,609), of which organic growth amounted to 6 percent.
• Operating profit increased with 17.7 percent to SEK 399 m (339), excluding one-off items* of SEK -28 m (30). Operating profit amounted to SEK 371 m (369). 
• The operating margin, excluding one-off items, increased to 6.9 percent (6.0).
• Profit for the period decreased to SEK 227 m (242).
• Earnings per share decreased to SEK 2.98 (3.17).
• Cash flow from operating activities increased to SEK 234 m (194).
• The net debt/equity ratio amounted to 0.4 (0.5) at the end of the period.

*See Reconsiliations, page 16.

Lindab's President and CEO, Anders Berg, commented:

"Both the Group's sales and operating margin continue to develop well, which is positive. Organic growth in the quarter amounted to 4 percent compared with last year, and the adjusted operating margin increased to 9.3 percent compared with 8.7 percent. Earnings per share decreased which is entirely attributable to one-off items, at the same time as the underlying business continues to have a positive trend.

Products & Solutions is developing very well; sales and the adjusted operating profit are the highest reported in a single quarter since 2008. The adjusted operating margin increased to 11.1 percent (10.3). The product areas related to ventilation continued to develop well, and I am particularly pleased with the strong increase in the Fire and Smoke product area.

Organic growth in Building Systems continued, whereas the operating profit did not develop as expected. The markets in Russia and the other CIS countries generally remain weak. We continue to develop our commercial offering and streamlining the business.

Based on the continued review of our business, we decided to close down certain units during the quarter and also carry out activities in other areas, resulting in total one-off costs of SEK 25 m during the quarter. We are doing this to further streamline our business.

During 2015, a number of strategic activities, including acquisitions and divestments, were initiated. We focused on developing the business, for example by integrating the products of the acquired companies into our solutions. We now enter the next stage which involves further review and development of our structure and business, where our strategy and financial targets continue to set the direction."

End

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This information is information that Lindab International AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 07.40 CET on 27 October 2016.
   

Contact:

LINDAB 
Anders Berg, President and CEO
Email: anders.berg@lindab.com
Mobile: +46 (0) 70 35 89155

Kristian Ackeby, CFO
Email : kristian.ackeby@lindab.com
Mobile:  +46 (0)70 33 85069
                                                                                                                                                                   

About Lindab:

Lindab develops, manufactures, markets and distributes products and system solutions for simplified construction and improved indoor climate. The products are characterised by their high quality, ease of assembly, energy efficiency, consideration towards the environment, and are delivered with high levels of service. Altogether, this increases customer value.

The Group had sales of SEK 7,589 m in 2015 and is established in 32 countries with approximately 5,100 employees. The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales. During 2015, the Nordic market accounted for 44 percent, Western Europe for 33 percent, the CEE/CIS (Central and Eastern Europe plus other former Soviet states) for 19 percent and other markets for 4 percent of total sales.

The share is listed on the Nasdaq OMX Nordic Exchange, Stockholm, Mid Cap, under the ticker symbol LIAB. For more information visit www.lindabgroup.com.